Fibe - Page 31 of 133 - Fibe (formerly EarlySalary): India's largest lending platform. One solution for all life’s big and small upgrades. Visit Now.

How to Analyse a Mutual Fund and Make Informed Choices

There’s no doubt about the credibility of mutual funds, they are one of the smartest and easiest ways to grow wealth. But simply investing and waiting for decades isn’t enough. If you want to maximise your returns, you need to analyse mutual fund performance regularly. Just doing this every few months can keep you ahead of the curve. That’s when you can truly expect your investments to be well aligned with your financial goals and risk appetite.

Analysing investments to track their performance might seem daunting at first, but once you understand what to look for, it becomes much easier. Read on to learn more about how to analyse a mutual fund effectively.

Key Factors for Mutual Fund Performance Analysis

Here are some key factors you can consider when analysing mutual funds performance.

1. Compare Fund Returns

To analyse mutual fund performance, you can start by comparing its returns over different periods. Try factoring in time frames for 1 year, 3 years, 5 years and since fund inception. Doing so will give a clear picture of how the fund performed during various market conditions. You can then take it a notch ahead and compare it with benchmark indices and similar funds to gauge its effectiveness.

2. Risk-Adjusted Returns

Not all returns come with the same level of risk. Some investments may give high returns but also carry higher risk. Others may offer slightly lower returns but with more stability. That’s where the Sharpe Ratio helps. It shows how much return a fund gives for the risk you’re taking. A higher Sharpe Ratio means better risk-adjusted returns.

3. Expense Ratio

The expense ratio is the annual fee charged by the fund house. A high expense ratio eats into your returns, making it crucial to choose a fund with a reasonable cost.

4. Fund Manager’s Track Record

The expertise of a fund manager plays a major role in mutual fund performance. Check their experience, past track record and tenure in managing the fund. A stable and well-performing fund manager is a good sign.

5. Portfolio Composition

Analyze mutual fund portfolio to see where your money is invested. Look at asset allocation, whether it’s invested in large-cap, mid-cap or small-cap stocks, debt instruments or a mix. A diversified portfolio can reduce risk.

6. Consistency in Performance

A fund delivering high returns for 1 year and underperforming the next isn’t reliable. Look for consistent performers instead of funds that just had a good short-term run.

7. Alpha and Beta Values

Alpha: Shows how much the fund outperforms the benchmark.
Beta: Indicates the fund’s volatility compared to the market. A beta of more than 1 means the fund is more volatile than the market.

Checking these factors can give you a complete analysis of how your fund is performing. Once you’re done with this step, you can then finetune them basis your goals.

How to Analyse a Mutual Fund Based on your Goals

Your choice of mutual funds should align with your financial goals:

Short-term goals (1-3 years): Consider debt funds for stability.
Medium-term goals (3-5 years): Balanced or hybrid funds could be a good option.
Long-term goals (5+ years): Equity funds offer better growth potential.

How Often Should you Review Mutual Fund Performance?

It is highly advisable to regularly review your mutual fund investments. Ideally, analyse mutual fund performance every 6 months to a year. It’s the perfect time frame to gauge the fund’s performance and align it your goals. However, avoid making impulsive decisions based on short-term fluctuations.

When to Exit a Mutual Fund?

Consistent Underperformance: If a fund consistently lags behind its benchmark and peers, it might be time to exit.
Change in Fund Management: A new fund manager with a poor track record could impact future returns.
High Expense Ratio: If the costs keep increasing without better returns, consider switching.
Change in Investment Goals: If your financial goals or risk appetite changes, reassess your fund choices.

A thorough mutual fund performance analysis is key to building wealth. Keep reviewing your investments and make informed decisions to secure your financial future. And if you ever need liquidity without selling your investments, consider a Loan Against Mutual Funds with Fibe. You can borrow up to ₹10 lakhs instantly. Within 10 minutes, you’ll have funds disbursed in your accounts. It’s one of the best ways to enjoy liquidity against your investments while still earning interest on your mutual funds!

FAQs

How can I compare mutual funds effectively?

Compare funds based on returns, risk-adjusted performance, expense ratio and consistency. Benchmark them against similar funds and indices to get a clearer picture.

How do I evaluate whether a mutual fund is performing well?

Look at its long-term returns, Sharpe Ratio, Alpha, Beta and consistency. If it consistently outperforms its benchmark with lower risk, it’s a good performer.

How often should I review my mutual fund’s performance?

Review your funds every 6-12 months to ensure they align with your investment strategy. However, avoid frequent switching based on short-term fluctuations and market scares.

Should I exit a fund if its performance declines?

A short-term decline isn’t a major concern. But if a fund underperforms for multiple years and has a high expense ratio, consider exiting.

Bank Account Number – How to Check Online?

Your bank account number is important in terms of taking care of your money and keeping track. You need it at various places like getting your salary, paying bills, sending money to someone, or setting up a plan to pay back a loan. Your bank account number is necessary for every money transaction you make.

Sometimes people forget where they put their bank account details and they do not know how to find their bank account number on the internet. The good thing is that now banks have many safe and easy ways for you to see your account information on the computer or phone.

In this guide, we will tell you how to find your bank account number, on the internet where you can find it and what you should do to keep your account details safe when you are looking at them online.

Bank Account Number of Digits

The number of digits in a bank account number varies from bank to bank in India. Here’s a general overview:

Public Sector Banks: Usually have account numbers ranging from 11 to 16 digits

Private Sector Banks: Commonly use 14-to-18-digit account numbers

Regional and Cooperative Banks: Typically issue account numbers with 10 to 12 digits

If you are unsure about the exact format of your bank account number, you should verify it directly through your bank’s official website, mobile banking app or customer support.

Importance of Account Numbers in Financial Transactions

Your bank account number is essential for carrying out secure and accurate financial transactions. Here’s why it matters:

Receiving Payments

Your salary, refunds, government benefits and other credits are transferred directly to your bank account using your account number.

Money Transfers

Whether you are using UPI, NEFT, RTGS or IMPS, entering the correct account number ensures your funds reach the intended recipient safely.

Bill Payments and Subscriptions

Utility bill payments, credit card dues, OTT subscriptions and automatic debits are linked to your bank account details.

Loan Repayments and Disbursements

Setting up NACH e-mandates for automatic EMI payments requires your account number and bank details.

Fraud Prevention

Using the correct account number helps reduce failed transactions and protects your funds from being transferred to the wrong account.

How to Find Your Bank Account Number Online

If you do not have access to physical banking documents, you can still check your account number online through several convenient methods.

Via Mobile Banking App

Most banks provide mobile banking apps that allow customers to access account details securely.

Steps to check your account number through a banking app:

Open your bank’s mobile banking app

Go to the ‘My Accounts’ or ‘Account Summary’ section

Your account number will be displayed along with account balance and branch details

Through Internet Banking

Internet banking is another reliable way to find your account number online.

Steps to check via net banking:

Visit your bank’s official website

Navigate to ‘Account Details’, ‘Profile’ or ‘Dashboard’

View your account number and related information

Via Bank SMS Service

Many banks offer SMS banking services for quick access to account details.

How it works:

Send a predefined keyword like BAL, ACCT or similar to the bank’s official SMS banking number

Use your registered mobile number

You will receive an SMS containing your account details and available balance

Aadhaar-Linked Bank Services

If your Aadhaar card is linked to your bank account, you can check the linked bank details through UIDAI services.

You can:

Visit the official UIDAI website

Use Aadhaar-enabled banking services

Verify which bank account is linked with your Aadhaar number

Where to Find Your Bank Account Number?

If you are unable to access online banking, you can still locate your account number using offline methods.

Bank Passbook

Your account number is usually printed on the first page of your passbook along with your name and branch details.

Cheque Book

Your bank account number is printed at the bottom of every cheque leaf.

Bank Statements

Physical or digital bank statements always contain your account number.

Debit Card Assistance

Although debit cards do not display your full bank account number, customer care can help you retrieve it after identity verification.

Customer Care Support

You can contact your bank’s official customer support helpline and verify your identity to get your account details securely.

Security Considerations While Checking Account Details Online

When accessing your bank account details online, it is important to follow proper security practices to protect your financial information.

Always use your bank’s official mobile app or website

Avoid logging into banking services using public Wi-Fi networks

Never share your OTP, PIN or internet banking password with anyone

Enable two-factor authentication whenever available

Log out after checking account details on shared devices

Avoid clicking on suspicious banking links received through SMS or email

Regularly update your mobile banking app for the latest security features

Verify website URLs carefully before entering login credentials

Conclusion

You need to know how to check your bank account number. This can save you a lot of time. Help you take care of your money better. You can do this in a ways: by using your mobile phone to do banking by using a computer to do internet banking by sending an SMS or by looking at your physical banking papers.

It is really easy and safe to get to your account details. You need your bank account number for everything you do with money. So, it is an idea to keep it somewhere you can get to it and keep it safe. If you do things the way when you do banking, you can protect your money from bad people who might try to take it.

If you want to be smart about your money, Fibe can help you. They can give you money when you need it with something called cash loans. They also have something called Loan Against Funds. This means you can get money quickly and easily.

FAQs on How to Find Bank Account Number

1. How do I find my bank account number on my phone?

You can find your bank account number through your bank’s mobile banking app, internet banking portal or SMS banking service. You may also contact customer care using your registered mobile number.

2. How can I check my account number via SMS?

To check your account number through SMS, send the designated keyword provided by your bank, such as BAL or ACCT, to the bank’s official SMS banking number using your registered mobile number.

3. Can I find my bank account number using my mobile number?

Banks do not directly reveal account numbers solely through a mobile number for security reasons. However, you can access your account details through mobile banking apps, customer support or branch visits after proper verification.

4. How do I retrieve my bank account number using my Aadhaar card?

If your Aadhaar card is linked to your bank account, you can verify linked bank details through UIDAI services, Aadhaar-enabled banking, or by visiting your bank branch with identity proof.

5. Can I check my account number through ATM?

Yes, some banks allow customers to view partial or complete account details through ATM services. You can also print a mini statement from the ATM, which may contain your account number.

6. Is the bank account number printed on a cheque book?

Yes, your bank account number is printed at the bottom of every cheque leaf in your cheque book along with the IFSC code and the cheque number.

7. How can I do an account number check online?

You can do an account number check online through your bank’s official mobile app or internet-banking portal. The number may also appear on an e-statement, digital passbook or account profile. There is no public central website that lets anyone look up a bank account number.

8. Can I check bank account number by mobile number?

You generally cannot check bank account number by mobile number through a public lookup. If the mobile number is registered with your bank, you may be able to sign in to the official banking app, contact customer care after verification or visit a branch to retrieve your account details.

9. Which apps allow bank account number check online?

For a bank account number check online, use your bank’s official mobile-banking app or internet-banking service. UPI apps usually display only masked bank-account details for security, so they may not show the complete account number.

MPIN Number: Full Form, Meaning, How to Set & Generate MPIN

This guide explains the mPIN full form, what an mPIN number means and why it plays a major role in UPI and mobile banking security. You will find step-by-step instructions to set, generate or reset your mPIN across net banking, UPI apps, ATMs and USSD codes in under five minutes.

An mPIN, or Mobile Personal Identification Number, is a 4 or 6-digit code that verifies your identity before you complete a mobile banking or UPI payment. It works like an ATM PIN for your phone, confirming transfers without you typing out full bank details.
That is why mPIN plays such a major role in security: even with your phone unlocked, nobody can move money out of your account without this code.

Here you will understand about the mPIN full form, what an mPIN number means, how to generate mPIN across every common method and how to keep it safe from fraud.

QUICK STAT

UPI processed 185.8 billion transactions in FY 2024-25, a 41% year-on-year jump, with its share of India’s total digital payment volume rising to 83.7%. (Source: RBI / NPCI data, FY 2024-25)

What is mPIN?

mPIN full form is Mobile Personal Identification Number, a 4 or 6-digit numeric code that verifies your identity during mobile banking and UPI transactions. Unlike a password, it is short by design and tied only to your registered device and mobile number. Before any payment goes through, the app asks for this code, confirming the person tapping Pay is actually you.

mPIN Meaning in Banking, Simply Put

In simple terms, mPIN meaning in banking refers to a personal lock on your digital transactions. Enter the 4 or 6 digits you set and the transaction clears in seconds, whether you are settling a UPI transfer, paying a bill or confirming a fund transfer through net banking.

What is mPIN Number?

An mPIN number is not a fixed code issued by your bank; you create it yourself when you set up mobile banking or a UPI app. Each account or UPI ID typically carries its own mPIN, so the code on one app can differ from another, even for the same account. Most banks use a 4-digit mPIN for basic mobile banking and a 6-digit option for UPI apps.

Switch phones, get a new SIM or reinstall a UPI app, and you will need to generate the mPIN number again via OTP, since it is device-linked rather than stored centrally.

What are the Key Uses of mPIN?

The mPIN protects banking and wallet transactions, bill payments, shopping and subscriptions. Here is where it is commonly used:

Mobile Banking: Authorising payments on apps like SBI YONO or HDFC MobileBanking

UPI Transactions: Approving transfers on Google Pay or PhonePe

Online Shopping: Confirming purchases on ecommerce sites via linked accounts or wallets

Bill Payments: Electricity, mobile, DTH and broadband payments

IMPS, NEFT, RTGS Transactions: Confirming customer identity for these transfer methods

IVR Banking: Confirming identity during phone-based banking

Wallet Transactions: Loading or paying from wallets such as Paytm or Amazon Pay

Subscription Renewals: Authorising recurring payments like streaming plans or SIP mandates

Why is mPIN Important For Security?

The mPIN keeps your account safe from unauthorised access. It acts as a second layer of security beyond your phone’s lock screen, keeping your banking details private even if someone has your phone.

Unlike passwords, your mPIN is not stored on servers in a form that can leak in a breach. Apps encrypt it and validate it against your device and SIM, so entering it wrong a few times locks the option temporarily instead of exposing the code. Banks never ask you to share your mPIN over a call, SMS or email; treat any such request as a scam.

WATCH OUT

Never share your mPIN, even with someone claiming to be from your bank. Regulated apps never ask for it over a call or message.

How to Generate mPIN: Step-by-step for Each Method

Setting or resetting your mPIN is simple and can be done through multiple methods.

Method	Steps
Net Banking	Log in, go to Mobile Banking, select Setup mPIN, verify via OTP and set your code
UPI Apps	Open the app, go to Settings, Set mPIN and enter your chosen 4 or 6-digit PIN
ATM Card	Insert card, select Forgot mPIN, verify with OTP and create a new mPIN
USSD Code	Dial *99#, choose Generate mPIN, enter card details and confirm
Bank Branch	Visit your branch and fill in the mPIN request form

How to Change Your mPIN?

Regularly changing your mPIN is a good practice for maintaining security. Here are the steps to change your mPIN:

Go to Settings or More and select Change mPIN

Enter your old mPIN and set a new one

Confirm using the OTP sent to your registered mobile number

That is, it. A few taps and your mPIN is updated.

Importance of mPIN in UPI Transactions

Your mPIN keeps everyday UPI payments safe, from ordering groceries and paying utility bills to booking movie tickets or splitting dinner bills with friends. Each entry verifies your identity and confirms the payment instantly, keeping your information private no matter how you pay.

PRO TIP

Set a 6-digit mPIN wherever your UPI app allows it. The extra 2 digits make it far harder to guess than a 4-digit code.

mPIN Vs Atm Pin: Key Differences

Aspect	mPIN	ATM PIN
Length	4 or 6 digits	Usually 4 digits
Where Used	UPI apps, mobile and net banking	ATMs and POS swipes
Linked To	Mobile number and device	Debit or credit card
Reset Method	OTP via app	Branch, ATM or net banking
Storage	Encrypted, device-bound	Encrypted on card network servers

Tips to Keep Your mPIN Safe

Never share your mPIN, including with bank staff or callers claiming to be support

Avoid easily guessed combinations like your birth year or repeated digits

Change your mPIN every 3 to 6 months

Do not save it in your phone’s notes app or write it on your card

Turn on biometric lock for banking apps alongside your mPIN

Log out of shared or public devices right after a transaction

Conclusion

The mPIN has made digital payments and wallet transactions both safe and easy. It adds security to everything you do online, whether shopping, paying bills, or sending money. Updating your mPIN regularly and never sharing it keeps your transactions protected.

Managing everyday UPI payments securely also means having the right payment tool in hand. The Fibe Axis Bank Credit Card supports UPI payments directly from your credit line, pairing cashback and purchase protection with the mPIN security you already trust.

FAQs On mPIN

1. What is the full form of mPIN?

Mobile Personal Identification Number, a 4 or 6-digit code that verifies your identity during mobile banking and UPI payments.

2. What is mPIN in UPI?

The code you enter to authorise a UPI transaction, confirming the person paying is the account holder.

3. Is mPIN the same as UPI PIN?

Not exactly. mPIN broadly covers mobile and net banking authentication, while UPI PIN refers specifically to the UPI app code, though the terms are often used interchangeably.

4. What happens if I enter the wrong mPIN multiple times?

Apps typically lock the option after 3 to 5 wrong attempts, and you then reset it using an OTP.

5. How frequently should I change my mPIN?

Every 3 to 6 months is a good practice.

6. I forgot my mPIN. Can I restore my old mPIN?

No, you cannot recover it. Reset it using the methods listed above.

7. Can I get an OTP for mPIN generation on any mobile number?

No, only on the number linked to your bank account.

8. I recently switched to a new phone. Do I need to reset my mPIN?

Yes, since it is device-linked, generate it again via OTP after switching phones or SIM cards.

What is XIRR in Mutual Funds and Why Does It Matter?

If you’ve ever invested in mutual funds, you’ve probably come across terms like CAGR, absolute returns and XIRR. While CAGR works well for lump sum investments, things get trickier when you invest through SIPs or make multiple withdrawals. That’s where XIRR (Extended Internal Rate of Return) comes in!

Read on to understand XIRR meaning in mutual fund, why it is essential and how it varies from a CAGR.

Understanding Mutual Fund XIRR

XIRR (Extended Internal Rate of Return) helps you figure out your actual investment returns, especially when money goes in and out at different times. Unlike simple return methods that assume regular cash flows, XIRR considers every investment and withdrawal, making it more accurate.

This is especially useful for SIP investors or anyone who redeems funds at different times. Since SIPs involve investing at multiple intervals, XIRR calculates the true annualised return by factoring in both the timing and amount of each transaction. It gives a clearer picture of how your money is really growing.

Why is XIRR Useful for Mutual Fund Investments?

Calculating profits in regular investments is easy. But with mutual funds, where you invest different amounts at different times — like in a SIP — it gets tricky. You can’t just take an average to figure out your returns.

Here, XIRR helps and gives you the actual return on your investment by factoring in when and how much money you invested.

Importance of XIRR in Mutual Fund Investments

Gives the real return – XIRR calculates how much you actually earn, considering when you invest.
Perfect for SIPs and lump sum – It works well whether you invest regularly or all at once.
More accurate than simple averages – It accounts for different investment dates and amounts.
Helps compare investments – XIRR makes it easy to see which fund or method gives better returns.
Shows true profit – Since investments happen at different times, XIRR gives a clear picture of your earnings.

Step-by-Step Process of Calculating XIRR

Figuring out your returns using XIRR in Excel is super simple. Here’s how you can do it with the easy steps listed below:

List Your Cash Flows & Dates

Enter all your transactions—use negative values for money you invest (purchases) and positive values for money you receive (redemptions).
Note down the exact dates for each transaction in a separate column.

Apply the XIRR Formula

Use this Excel formula:
=XIRR(values, dates, [guess])
Values: List of all cash flows (investments & returns).
Dates: Corresponding dates for each transaction.
Guess (optional): You can leave this blank; Excel will calculate it for you.

Check Your Result

Excel will give you the annualised return based on your cash flows and their timing.

Say you invested ₹5,000 on Jan 1, another ₹5,000 on Feb 1 and ₹5,000 more on Mar 1. Then, you got back ₹20,000 on Apr 1.
Just plug these numbers into the XIRR formula, and Excel will tell you your annual return rate.

Things to Keep in Mind When Calculating XIRR in Excel

Correct cash flow sign: Investments should be negative numbers, while redemptions or payments must be positive.
Handling dividend reinvestment: When reinvesting dividends, you don’t need to count the actual cash, so do not include it in your calculations.
Switches between funds: Treat switches as redemptions or investments based on the way. For estimates at the portfolio level, you can ignore changes.
Multiple SIPs: Track each SIP individually by noting the amount and date for accurate estimates.

Now that you know what XIRR means, it will become your go-to tool for figuring out the real returns on your mutual fund investments. Whether you’re investing through SIPs or making lump sum payments, XIRR helps you track your actual gains.

And if you ever need funds without selling your investments, Fibe’s Loan Against Mutual Funds has you covered! Get instant access to cash up to ₹10 lakhs with a 100% digital process and 0 foreclosure charges. Pay only interest while you keep your portfolio intact and growing. Download the Fibe App today!

Frequently Asked Questions (FAQs)

How is XIRR different from CAGR?

CAGR assumes that all purchases happen at the same time, while XIRR takes into account cash flows that occur at different times.

Is XIRR only applicable to mutual funds?

No, it can be used for any property with irregular cash flows, like stocks and real estate.

What happens if I miss a transaction in the XIRR calculation?

Missing transfers can give inaccurate results. List all investments, withdrawals,\ and their timings to ensure correctness.

ATM Withdrawal Limits: How Much You Can Withdraw Per Day

An ATM withdrawal limit is the maximum amount of cash you can withdraw using your debit or ATM card within a specified period, usually a day. Banks set these limits based on the card variant, account type, security controls and their own policies. The ATM you use may also impose a separate per-transaction cap.

There is no single ATM cash withdrawal limit that applies to every bank or every card in India. Your daily limit may be lower or higher depending on your card. Understanding both your daily card limit and the ATM’s per-transaction limit can help you plan withdrawals and avoid unnecessary repeat transactions.

Factors Affecting Your Daily ATM Withdrawal Limit

Card type or variant: Premium and higher-tier debit cards often have higher ATM cash withdrawal limits than entry-level cards.

Account type: The debit card issued with your savings, salary, current or premium banking account may determine the maximum withdrawal limit available to you.

Limit set on your card: Some banks allow you to reduce or modify your ATM withdrawal limit through mobile banking or net banking, subject to the maximum permitted for your card.

ATM operator or network limit: An ATM may cap the amount you can withdraw in a single transaction even when your card’s daily limit is higher.

Available account balance: You can withdraw only up to the available balance in your linked account, subject to the applicable card and ATM limits.

Domestic or international usage: International ATM withdrawal limits and charges may differ from domestic limits and can also depend on local ATM rules.

So, if you are wondering, “How much cash can I withdraw from an ATM?”, check your bank’s app, website or debit card terms for the limit that applies to your specific card.

Why Do Banks Set an ATM Withdrawal Limit?

Reduce fraud exposure: A daily cap limits the amount that can be withdrawn if a card and PIN are compromised.

Manage ATM cash availability: Withdrawal caps can help banks and ATM operators manage cash across their ATM network.

Control transaction risk: Banks use transaction limits as part of their broader debit-card security and risk controls.

Match limits to card products: Different account and debit-card variants offer different transaction limits based on product features.

Give customers more control: Some banks let customers set lower card limits to reduce risk and manage spending.

ATM Withdrawal Limits by Major Banks

ATM withdrawal limits vary by debit-card variant, so a bank may not have one universal daily limit. The table below gives representative examples from current bank product information:

Bank	Representative debit card	Daily ATM cash withdrawal limit	Important note
SBI	Global International Debit Card	Up to ₹40,000 per day	SBI limits vary by card; for example, Platinum International can allow up to ₹1,00,000 per day.
HDFC Bank	Platinum Debit Card	Up to ₹1,00,000 per day	Limits depend on the specific debit card and account. HDFC also lets applicable card limits govern daily withdrawals.
ICICI Bank	Coral Debit Card	Up to ₹1,00,000 per day	ICICI limits vary by card variant and customers can modify limits within the permitted range.

Note: These are examples, not bank-wide limits. Limits can change and may differ for other card variants. Always check the current limit shown in your bank’s official app, website or debit-card terms before making a large withdrawal.

Daily Limit vs Per-Transaction Withdrawal Limit

Your daily ATM withdrawal limit and the ATM’s per-transaction withdrawal limit are not always the same.

Limit	What It Means	Example
Daily withdrawal limit	The maximum amount your card allows you to withdraw from ATMs during the day.	If your daily card limit is ₹40,000, you cannot withdraw more than ₹40,000 through normal ATM card withdrawals that day.
Per-transaction limit	The maximum amount that a particular ATM or network permits in one withdrawal attempt.	If an ATM allows only ₹10,000 per transaction but your daily limit is ₹40,000, you may need multiple withdrawals, subject to available cash and transaction rules.

For example, SBI states that SBI debit-card users can withdraw up to ₹10,000 per transaction at other banks’ ATMs, even though the card’s total daily limit may be much higher. Other banks and ATM operators may apply their own per-transaction caps.

ATM Transaction Limits and Charges

RBI prescribes a minimum number of free ATM transactions for savings bank account holders. The rules depend on whether you use your own bank’s ATM or another bank’s ATM.

ATM usage	Minimum free transactions under RBI rules	What is counted
Your own bank’s ATM	At least 5 free financial transactions per month	Cash withdrawals count. Non-cash transactions at your own bank’s ATM are not counted in this free-transaction quota.
Another bank’s ATM in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai or New Delhi	At least 3 free transactions per month	Financial and non-financial transactions are included.
Another bank’s ATM outside the six metro locations	At least 5 free transactions per month	Financial and non-financial transactions are included.

Banks may offer more free transactions than the RBI minimum. Once you exceed the applicable free quota, your bank may charge for ATM transactions. RBI currently caps the customer charge at ₹23 per transaction, plus applicable taxes.

Failed ATM transactions caused by technical issues, unavailable cash, communication failures, invalid PIN validation and certain other bank- or service-provider-related declines should not count towards your free transaction quota under RBI rules.

Also Read: ATM Card & Annual Maintenance Charges

How to Avoid ATM Charges?

Use your own bank’s ATM when practical: Your own bank must provide at least five free financial transactions every month, and non-cash transactions at your own bank’s ATM do not count towards that quota.

Plan cash withdrawals: Withdrawing a suitable amount in one visit can reduce repeated ATM usage, as long as you stay within your daily and per-transaction limits.

Use digital banking for non-cash needs: Check balances, transfer money, pay bills or request services through mobile banking or net banking instead of using another bank’s ATM.

Know the metro and non-metro rules: Other-bank ATM free limits differ between the six RBI-defined metro locations and other locations.

Check your bank’s fee schedule: Some account types provide extra or unlimited free ATM transactions, while others follow the RBI minimum.

Can You Increase Your ATM Withdrawal Limit?

In many cases, yes. Your bank may allow you to increase or decrease your debit-card ATM limit through mobile banking, net banking, customer care or a branch. However, you can usually increase it only up to the maximum permitted for your debit-card variant and account.

For example, ICICI Bank allows eligible customers to modify debit-card limits through iMobile or Net Banking, while SBI provides channels for customers to modify transaction limits within the prescribed limit for their card variant. If you need a higher limit, first check whether your existing card supports it or whether your bank offers another eligible card variant.

For purchases where card payments are accepted, you may not need to withdraw cash at all. The Fibe Axis Bank Credit Card is a lifetime-free numberless RuPay credit card with ₹0 joining, annual and renewal fees. It offers 3% cashback on eligible food-order, local-commute and entertainment spends, 1% cashback on other eligible spends, UPI payments and a 1% fuel surcharge waiver on eligible fuel transactions. Terms and eligibility apply.

FAQs On ATM Withdrawal Limit and Transaction Charges

1.Is it possible to withdraw ₹30,000 from an ATM?

Yes, if your available balance and daily ATM withdrawal limit are at least ₹30,000. However, the ATM may impose a lower per-transaction limit, so you may need more than one withdrawal. A transaction fee does not allow you to bypass your card’s daily withdrawal limit; fees may apply only if your ATM usage exceeds the applicable free transaction quota.

2.Why do banks set the ATM withdrawal limit?

Banks set ATM limits to reduce fraud exposure, manage transaction risk, control ATM cash availability and align withdrawal limits with different debit-card and account products. A lower customer-set limit can also reduce potential losses if a card is compromised.

3.How many free ATM transactions can I make in a month?

For savings bank account holders, RBI requires at least five free financial transactions a month at your own bank’s ATMs. Non-cash transactions at your own bank’s ATMs do not count towards this quota. At another bank’s ATM, you must get at least three free transactions per month in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi, and at least five in other locations. Other-bank ATM quotas include both financial and non-financial transactions. Banks may offer more than these minimums.

4.Can I increase my daily ATM withdrawal limit permanently?

Possibly. Many banks let you change your debit-card limits, but the maximum depends on your card variant and bank policy. You may be able to change the limit through mobile banking, net banking, customer care or your bank branch.

5.Are there additional fees for ATM transactions in other cities?

Simply using an ATM in another city does not automatically create a separate “other city” fee. What matters is whether you are using your own bank’s ATM or another bank’s ATM, whether the ATM is in one of the six RBI-defined metro locations, and whether you have crossed your free transaction quota. Your bank’s account-specific fee schedule may also provide additional benefits or charges.

6.How Much Money Can Be Withdrawn From an ATM in One Transaction?

The amount you can withdraw in one ATM transaction depends on the ATM operator, bank and card. The per-transaction cap may be lower than your total daily limit. For example, some banks cap withdrawals at another bank’s ATM at ₹10,000 per transaction. Check the ATM screen and your card terms before making a large withdrawal.

7.What Is the ATM Withdrawal Limit for SBI, HDFC and ICICI Bank?

There is no single withdrawal limit for all SBI, HDFC Bank or ICICI Bank customers because limits vary by debit-card variant. For example, SBI’s Global International Debit Card allows up to ₹40,000 per day, while its Platinum International Debit Card allows up to ₹1,00,000. HDFC Bank’s Platinum Debit Card can provide a ₹1,00,000 daily ATM withdrawal limit, while ICICI Bank’s Coral Debit Card currently lists a ₹1,00,000 domestic ATM withdrawal limit. Always verify the limit for your specific card because banks can revise these limits.

8.Can I Withdraw Cash From an ATM If I Exceed My Daily Limit?

No. Once you reach your card’s daily ATM cash withdrawal limit, another normal card-based ATM withdrawal will usually be declined until the limit resets. Paying an ATM transaction fee does not increase or override the daily withdrawal cap. If your bank permits limit changes, you may be able to raise the limit within your card’s maximum permitted amount before making the transaction.

Cash Credit vs. Overdraft: Which Is Better for Your Business?

Running a business requires a steady flow of funds. Managing these rolling funds can be challenging. And trying to sort out your business’s short-term financing options can seem cumbersome at times. You might lean towards options like overdraft and cash credit for help. Both can help smooth out your cash flow when expenses come up, but they work differently.

What is Cash Credit?

Cash credit is basically a flexible loan that you can draw on as needed. Cash credit account meaning refers to a set-up where the bank provides you with a set borrowing limit. This credit is backed by your assets like inventory or receivables. You need to pay interest only on the money you actually end up using. It’s designed to cover your day-to-day business expenses, helping you manage the gap between receivables and payables.

This facility works best if your business has a predictable cycle of expenses. Since you know roughly how much you need to cover regular operations, cash credit can be a handy, low-cost option. You can enjoy lower interest rates on these because the credit is secured by your assets. You can use this tool to bridge the cash gap during slower business months. The best part is that you only pay for what you borrow.

What Is an Overdraft?

An overdraft is a bit different. It’s linked to your current account and you can use more cash than what’s lying in your account. This too comes with a certain limit. It’s more like your bank allowing you a little extra breathing room when your account balance dips below 0. This can be really useful if unexpected expenses arise.

These are convenient but come with higher interest rates and fees, especially if you use them frequently. Overdrafts are not secured by collateral. This is why the cost of borrowing tends to be higher. This option is more about having a quick, flexible backup plan when the need for funds arises.

Comparing the Two: The CC and OD difference

When it comes to the CC and OD difference, it all comes down to how structured each option is. Here’s a table showing the difference between each option:

Feature	Cash Credit (CC)	Overdraft (OD)
Structure	Fixed limit based on business assets	Flexible cushion from current account
Limit Basis	Determined by the value of pledged assets	Based on account balance and banking relationship
Usage	Clear threshold amount for use	Can be used as needed, up to the limit
Flexibility	Less flexible compared to OD	Highly flexible
Interest Payment	Only pay interest on the amount used	Interest accrues on the outstanding balance
Best For	Businesses that need structured short-term funding	Covering unexpected shortfalls
Risk	Lower risk due to defined limit	Higher risk if overused due to accumulating interest

It’s extremely important to understand the difference between overdraft and cash credit. This will help you decide which option suits your needs better.

Deciding What Works Best for You

In choosing between cash credit and an overdraft, think about your business’s cash flow patterns. Do you know your regular expenses well and have predictable gaps between income and outgo? If so, cash credit might be the more efficient and affordable option. But if your revenue is unpredictable and you sometimes need funds on the fly, an overdraft might be more practical despite its higher cost.

Both options offer a way to manage cash flow, but your decision should be based on your specific needs. Consider how often you face unexpected expenses versus planned ones. For planned outgoings, cash credit’s structured nature can provide peace of mind. For sudden needs, an overdraft offers the flexibility that might just save the day.

Now that you know the difference between overdraft and cash credit you can choose the one that fits how your business operates. Always look out for the lender’s credibility, interest rate charges and processing fees to bag the best deal. Lastly do not forget to check foreclosure charges if any. Once you’re aware of these costs you can opt for an option that suits your working capital needs and business model.

And while you’re exploring overdraft and cash credit, consider looking into options like the Instant Cash Loan from Fibe. You can get up to ₹5 lakh in just 2 minutes via a 100% digital process. A handy way to manage your cash flow without extra costs. You can even use the Fibe Instant Cash Loan EMI Calculator to estimate your monthly EMI before applying. An excellent way to assess affordability and keep your business finances in check!

FAQs

Which has a lower interest rate, cash credit or overdraft?

In most cases, cash credit offers a lower interest rate because it’s secured against your assets. Overdrafts, being less secured, often come with higher rates if you’re not cautious. It’s always a good idea to compare your bank’s specific offers to see what works best for your situation.

Is overdraft protection the same as credit?

Not exactly. Overdraft protection is like a backup plan to prevent your account from bouncing when your balance runs low. It’s not the same as having a dedicated line of credit like cash credit. Overdraft protection ensures you don’t face penalties for insufficient funds, but it’s not intended to cover larger, ongoing expenses.

What Businesses Fall Under MSME? Complete Industry List

The MSME sector touches almost every part of our daily lives now. They play a crucial role in boosting our economic growth. MSMEs contributed 45.79% of India’s exports up to May 2024. Apart from the exports’ heavy lifting, they also add diversity to our domestic markets by supporting innovation. They help fill gaps that larger companies sometimes overlook. For many, an MSME business idea might be the perfect stepping stone to entrepreneurship.

Read on to understand this in depth.

What is MSME Sector?

The MSME sector includes Micro, Small and Medium Enterprises. These businesses might be small in scale but leave a mighty impact on the markets. They not only drive innovation but also create countless job opportunities. It’s the ecosystem of businesses that make up a major chunk of our economy.

Here are the MSME classifications for manufacturing and service businesses:

Category	Investment in Plant & Machinery or Equipment	Annual Turnover
Micro	Up to ₹1 crore	Up to ₹5 crore
Small	Up to ₹10 crore	Up to ₹50 crore
Medium	Up to ₹50 crore	Up to ₹250 crore

What are the Different Types of MSME Businesses?

There are plenty of business types that fall under the MSME umbrella.

1. Manufacturing

From auto components to toys for kids, small manufacturing plants and factories produce everything. They start on a smaller platform and scale up as they grow over time. They bring innovation and personalised touches to everyday products.

2. Food Processing

Food is something we all enjoy, and MSMEs in the food processing industry do it exceptionally well. They create local flavours and specialities that reflect regional tastes. Right from pickles to papads and even sauces and dips, food processing is booming in India.

3. Textile and Garments

You can find multiple textile industries throughout the country. Right from boutique clothing lines to large-scale fabric production, MSMEs in this space are doing exceptionally well.

4. Information Technology

Many MSMEs are centered around the Information Technology sector, covering areas like web development, digital marketing, and app development. The best part? They offer innovative solutions at competitive prices, making technology more accessible for businesses of all sizes.

5. Retail and Trading

Retail MSMEs include everything from small shops to online stores. They serve local communities with personalised service and unique products. These businesses are great for consumers who prefer a personal touch over impersonal corporate chains.

6. Service Industries

Many MSMEs offer services rather than tangible products. These include everything from logistics and transportation to consultancy and repair services. Service-based MSMEs are essential in keeping our daily lives running smoothly. They ensure that we have access to essential services, no matter where we live.

7. Construction and Real Estate

Small construction companies and real estate agencies also fall under the MSME sector.

8. Health and Wellness

Lately, this sector has seen a boom, with many MSMEs offering fitness centres, organic food outlets and wellness clinics. This change is making health and wellness accessible to everyone.

The MSME sectors in India are incredibly diverse, spanning multiple industries and offering a world of opportunities. MSMEs like Clairvoyant India Pvt Ltd, Olimax Systems Pvt Ltd and Acewin Agritech Limited are leading the way with innovative solutions in their respective sectors. These companies highlight the sector’s dynamic growth and impact. You can even check the MSME-registered companies list online for a snapshot of just how varied this sector truly is.

The Road Ahead for MSMEs

The world of MSMEs might seem complex at first. But when you break it down, it’s all about small businesses doing big things. MSMEs are growing in importance every day. With digital tools and social media, even small businesses have a chance to shine on a global stage. They are agile and can quickly adapt to changing market needs. This makes them especially attractive to young entrepreneurs and startups.

If you’re looking for an MSME business idea, think about your strengths and what you’re passionate about. Whether it’s crafting, coding, or cooking, there’s a place for you in this sector. The key is to start small, learn as you go and gradually scale up.

Fibe Instant Cash Loan can come to your rescue when it comes to securing quick funds. You can easily get a loan of up to ₹5 lakhs in 2 minutes!

FAQs on Business that comes under MSME Sector

What are some examples of businesses that fall under MSME?

Small manufacturing units, food processing companies, textile workshops, local retail stores or even service-based companies offering logistics and consultancy-based offerings fall under the MSME companies list.

Can a startup be classified as an MSME?

Definitely, startups fall under the MSME bracket. But, they need to meet certain criteria related to investment and turnover set by the government. Many innovative startups begin as small MSMEs before scaling up.

Everything You Need to Know About Savings Accounts and How They Work

Idle cash lying in your home or office locker does not beat inflation. So, next time you get your annual bonus, make sure to deposit a part of it in a savings account. A savings account is a great option for making your money work for you. It’s safe, simple, hassle-free and keeps earning a little extra on the side.

What is a Savings Account?

Saving account meaning refers to a bank account where you deposit cash over time. Whenever you put in a deposit and hold the funds for a certain period of time, the bank adds a bit more to your balance as interest. This is one of the easiest ways to watch your money grow without making any complex investments.

How Does a Savings Account Work?

Now that we know what is a savings account, let’s see how they work:

Make deposits: Every time you save or keep aside some amount in your savings account.
Bank pays interest: This interest is like a bonus, it’s a small percentage of your deposit that adds up over time. Most banks offer 2.60% p.a. – 8.00% p.a.
Monthly or quarterly compounding: The interest you earn is compounded and that small percentage grows significantly over time.

That’s not it, the best part is that while your money is working for you, it’s not locked away. You can choose to withdraw or transfer funds whenever you need them. In most cases your funds are even insured up to a certain amount by government schemes, giving you peace of mind.

What are the Types of Savings Account?

There are a few major types of savings account options:

Basic Savings Account: Perfect for daily use. It has a low minimum balance requirement and offers standard interest rates.
High-Yield Savings Account: If you can maintain a larger balance and meet certain conditions, you can choose this option. Since they offer higher interest rates.
Student Savings Account: If you are a student this one’s for you. With lower balance requirements it’s perfect for young savers.
Senior Citizen Account: Like most investment instruments, savings accounts also have special perks, like higher interest rates or easier access features for seniors.

How to Open a Savings Account?

Follow these steps to open a savings account:

Research Your Options: Look for banks that offer the best interest rates. Check for additional benefits and processing fees.
Gather Your Documents: Keep your paperwork ready, you’ll typically need your KYC documents like ID, address proof and a passport-sized photo.
Apply: You can fill out an application form online or even visit your nearest branch.
Deposit Funds: There are a few banks that require an initial deposit to activate your account.
Start Saving: Once your account is active, you can start depositing money and watch your savings grow!

What are the Benefits of Opening a Savings Account?

Having a saving account benefits go well beyond just storing money. By opening a savings account in a trusted financial institute, you can:

Earn Extra Money: With interest, your money grows gradually without you doing extra work.
Enjoy Easy Access: With banking going digital, you can manage your funds easily with online and mobile banking.
Build Good Habits: Small savings go a long way, regular deposits will help you develop a strong savings ethic.
Feel Secure & Insured: Your deposits are protected, so you can feel safe about your money.
Track Your Spending: These days almost all banks provide digital and offline assets. They give you clear, regular statements, helping you keep an eye on your finances.

Things to Consider Before Starting a Savings Account

Here’s what you must look into before choosing an account:

Interest Calculation: Different banks calculate interest in various ways. Some use simple interest while others use compound interest. It pays to know the details, as it can make a difference over time.
Savings Interest Rates: Each bank also offers different interest rates on their savings account. Choose a bank that gives you higher interest rates.
Types of Savings Account: As we’ve discussed above, choose an account that fits your lifestyle and goals.
Digital Management: Go with an option that provides a robust online ecosystem. It will save you time and energy as you can easily track your savings, set up automatic transfers, and even schedule regular deposits from your phone.
Flexibility: Make sure you can withdraw whenever you need the funds. Savings accounts are supposed to provide instant liquidity.

A savings account is a smart way to keep your money safe while letting it work for you. Once you know what you need, you can choose the option that best fits your lifestyle. That said, if you require immediate funds to bridge monetary gaps, consider a Personal Loan with Fibe for hassle-free credit. With Fibe, you can get up to ₹5 lakhs at competitive interest rates, with minimal documentation and in just 2 minutes. Download the Personal Loan App or sign up on our website to apply in just a few clicks!

FAQs on What is Saving Account

How do you close a savings account?

To close your savings account, you can visit your bank’s branch or even use their online platform. You must remember to withdraw any remaining funds and clear any pending transactions before you finalise the closure.

Do I need to be over 18 to open a savings account?

Generally, yes. Most banks require you to be at least 18. However, there are student or minor accounts available for younger savers that are usually managed by a guardian.

Are there charges for an ATM card linked to a savings account?

Many banks offer a free ATM card with your savings account. That said, some might charge a small fee for extra services or additional cards. It’s best to check with your bank for the exact details.

How to Download an NPS Transaction Statement?

The National Pension System (NPS) is a government-backed plan that helps you save for retirement. It works on the principle of making small contributions regularly. Over time, these small amounts compound, which helps your money grow. And, like all investments, it is important to keep track of your NPS contributions.

You can easily track them and stay on top of your retirement savings by accessing your NPS transaction statement. Read on to know how.

Understanding Your NPS Transaction Statement

The NPS transaction statement is like your personal financial diary, it captures every deposit, withdrawal, and investment move in your NPS account. This detailed document shows your contributions and fund allocations. It even serves as proof when you need to claim tax benefits. It basically provides a complete snapshot of your NPS portfolio.

There are 3 main types of NPS account statements:

Transaction Statements: Record all deposits, redemptions and transfers
Holding Statements: Give you an overview of your current investments
Voluntary Contribution Statements: Highlights any extra contributions you make to boost your retirement fund.

This gives you a clear idea of how your investments are performing. It shows how your funds are split among different Pension Fund Managers (PFMs). You can easily figure out which contributions come from you and which come from your employer.

Benefits of Downloading Your NPS Transaction Statement

Downloading your NPS transaction statement online can make managing your finances a breeze. Here are some of the benefits:

Comprehensive Overview: You get all your personal details, contact information, nominee data, and even nodal office information all in one document. The nodal office is the point of contact between NPS subscribers and the Central Recordkeeping Agency (CRA).
Detailed Investment Insights: See real-time data on your total contributions, accumulated pension wealth and returns.
Fund Allocation Clarity: Know exactly how your investments are spread across different PFMs, which helps you make smarter portfolio decisions.
Granular Transaction Breakdown: Track individual contributions, units, and respective returns to fine-tune your investment strategy.
Clear Distinction Between Contributions: Easily tell the difference between what you contribute and what your employer adds.
Proof for Tax Benefits: Use your statement as official documentation to claim applicable tax deductions.

Also Read: Tax Benefits of NPS

Step-by-Step Guide to Downloading Your NPS Transaction Statement

Here’s how you can access your NPS statement online and keep your records updated:

Visit the NSDL (National Securities Depository Limited) Website
Open your web browser and head over to www.cra-nsdl.com.
Log in Using Your PRAN
Use your Permanent Retirement Account Number (PRAN) as your user ID along with your password to sign in. This will give you access to your NPS records.
Complete the Captcha
Before proceeding, you’ll need to enter the captcha code to verify that you’re not a robot. Once you enter the code correctly, hit the ‘Proceed’ button.
Access Your Statement Section
Once you’re in, navigate to the ‘Transaction Statement’ section. Here, click on ‘Holding Statement’ to quickly view your account balance.
Download the Full Statement
Select the ‘Transaction Statement’ option and click on ‘Download.’ Your NPS statement PDF download will start soon!

The NSDL portal is secure and easy to use, keeping you updated on your contributions and investments anytime, anywhere.

After you’re done downloading your statement, you’ll need a password for NPS statement access. Here’s how the password is structured:

It is an 8-character code.
The first 4 characters are the starting letters of your first name (if your first name is shorter than four characters, a ‘9’ is added to complete the sequence).
The last 4 digits represent your date and month of birth in DDMM format.

If you ever face any issues or forget your password for the NPS statement, you can click on the ‘Forgot Password?’ link on your login page and follow the instructions to reset your password.

Follow these steps to download NPS statement and keep a detailed record of your retirement savings. Managing your National Pension System transactions is as simple as that! So whether you’re preparing for tax submissions, tracking your investment growth, or simply keeping your financial life organised, having your NPS statement at your fingertips can be helpful.

If you’re looking for a go-to place for all your financial needs, consider exploring Fibe. Fibe offers instant, collateral-free cash loans up to ₹5 lakhs within minutes. You can even foreclose your loans without having to worry about any penalties or extra charges. With Fibe, accessing funds is quick, hassle-free and seamlessly fits into your financial plans!

FAQs:

Can I download statements for a specific time period?

Yes, most NPS portals like the NSDL allow you to select a custom date range. You can focus on specific months, quarters, or financial years without having to sift through your entire transaction history.

What if I forget my NPS account password?

Don’t worry! If you forget your password, click on the ‘Forgot Password?’ tab on the NSDL or your bank’s portal. This easy-to-follow process will help you reset your login credentials quickly and securely.

Can I download transaction statements for Corporate NPS accounts?

Absolutely. Whether you’re managing a personal or corporate account, the process remains largely the same. Corporate users can also download NPS statement records to keep detailed track of all contributions and investments made by the company.

National Pension Scheme Returns and Taxes Implications: An Easy Guide

Financial planning is important for your future, especially during retirement. Investing in various schemes and assets helps lower risks and get higher returns in your golden years. To access financial stability during retirement, the Government of India launched the National Pension Scheme (NPS). This scheme is open to all working-class employees except those in the armed forces. National Pension Scheme returns are completely tax-free until maturity.

This scheme allows you to invest in a pension account until you are employed. After retirement, you receive the amount in the form of a monthly pension. It is focused on long-term retirement income and one benefit of it is the tax exemption you enjoy. The returns on the NPS scheme depend on your asset allocation, which can be equity, alternative assets, corporate bonds or government bonds.

National Pension Scheme Benefits

Investing in the National Pension Scheme (NPS) allows you to benefit from tax exemptions and access higher returns. The NPS program comes with simple exit rules, too. Read on to understand these and other benefits in detail:

You can claim a tax deduction for contributions made. Under Section 80CCE of the Income Tax Act, you can claim a tax benefit of up to ₹1.5 Lakhs. An additional deduction of ₹50,000 under Section 80CCD(B) can be claimed.
Compared to long-term savings schemes like the Public Provident Fund, the returns from NPS are higher. As a portion of the fund goes to equity, NPS provides excellent returns among other options. You can change the fund manager if you wish to invest in a different portfolio. You can calculate NPS returns using a free online calculator. Also, the risk associated is lower as the equity exposure is capped at up to 75% for all return rates.
The exit options and terms for the NPS program are flexible. When you reach the age of 60 years, you can withdraw a lump sum of 60% of the corpus amount. You can also make withdrawals thrice with a minimum gap of 5 years during the investment period. You can use these withdrawn funds for medical emergencies, children’s education or to buy a house.

Types of NPS Accounts

There are two types of NPS accounts, where a Tier 1 account is the main one and a Tier 2 account is optional.

Tier-1 Account

This is the main account where you can invest as a salaried or self-employed individual. As this is the main account, you cannot make withdrawals before attaining 60 years of age. You can contribute to assets like government securities, equity and corporate bonds.

Tier-2 Account

This is an optional account that you can contribute to only if you have a Tier-1 account. This account investment is similar to a mutual fund with no lock-in period. You can withdraw funds whenever required and get tax benefits only if you are a government employee.

NPS Returns for Different Accounts

The returns in the NPS program are excellent based on the investment and account type. You must note that the long-term returns from both accounts vary depending on market fluctuations.

NPS Tier-1 Returns

The tier-1 account invests in a mix of asset classes and provides assured returns. The NPS return percentage can range from 9% to 12% based on how well the investments perform. For the first year, the NPS return percentage is up to 9.40% on government bonds, 8.55% on alternative assets, 32.96% on equity and 7.91% on corporate bonds on average. The minimum contribution to this account starts from ₹500.

NPS Tier-2 Returns

Depending on our investment selections, Tier-2 provides returns that may differ from Tier-1 account returns. The potential returns can also vary as this account enables withdrawal options without limitations. Similar to Tier-1 accounts, the returns will depend on how well the asset classes perform. For the first year, the NPS tier-2 returns offer 7.84% on corporate bonds, 32.98% on equity and 9.24% on government bonds on average. The minimum contribution to this account starts from ₹1,000.

Tax on NPS Returns

NPS Tier-1 returns and Tier-2 returns are completely tax-free until maturity. As soon as you turn 60 years, you can withdraw up to 60% of the lump-sum amount, tax-exempt under Section 10(12A). The remaining 40% you can use to buy annuities, which are again tax-free under Section 8CCD(5).

Also Read: Tax Benefits of NPS

National Pension Scheme Withdrawal or Exit Rules

The exit rules for the NPS program are simple, as you can withdraw upon reaching 60 years, prematurely or upon death.

When you attain 60 years, you can use at least 40% annuity to get a regular monthly income and withdraw the remaining 60%. However, you can withdraw 100% of the corpus amount if your amount is equal to or less than ₹5 Lakhs.
In case of premature exit, you can use at least 80% of the corpus amount to buy an annuity providing a regular monthly pension. If your amount is less than or equal to ₹2.5 Lakhs, you can opt for a 100% lump-sum withdrawal facility.
If you die as a contributor, 100% corpus amount is provided to your heir or the nominee.

Investing early on in NPS can help you build retirement savings with better returns across various asset classes. You can choose between Tier 1 and Tier 2 accounts, but keep in mind that returns depend on market performance and fund management.

If you are looking forward to accessing funds without liquidating your current investments, you can opt for other options. If you invest in mutual funds, you can get access to funds using Fibe Loan Against Mutual funds.

This loan lets you access up to ₹10 Lakhs instantly while your mutual funds keep growing. You get up to 80% of your fund’s value, quick 10-minute disbursal and pay only interest for what you utilise. Loan against mutual funds with Fibe is a hassle-free way to handle short-term needs without selling your long-term goals. Download the app from the Play Store or App Store to apply now!

FAQs on National Pension Scheme Returns

Does the NPS provide inflation-adjusted returns?

Yes. The NPS provides a higher inflation-adjusted return of 9% up to 12% over the long term, compared to other schemes such as PPF and SCSS.

Can I adjust my NPS contributions to increase potential returns?

Yes, you can adjust your NPS contributions and the asset allocation within the NPS scheme to optimise potential returns based on your risk tolerance. You can invest in a mix of equity, corporate bonds and government securities, which can help you tailor your portfolio according to your retirement goals. Additionally, you can change your pension fund manager if needed.

Can I expect NPS returns to beat inflation in the long run?

Yes. You can expect the NPS returns to beat inflation in the long run, as experts determine a mix of debt and equity chosen ahead of other options can tackle up to 7% inflation growth easily.

Is NPS better than FD?

NPS programs can offer much higher returns compared to Fixed Deposits (FDs) as they invest in different market-linked equities. However, these returns fluctuate based on market conditions and may not remain stable.